The collapse of FTX
A crypto exchange valued at 32 billion dollars is revealed to have been spending customer deposits.
- When
- Known to
- ± 12 hours
- Era
- Contemporary, Holocene
FTX filed for bankruptcy on 11 November 2022 after a run exposed that customer funds had been lent to Alameda Research. Sam Bankman-Fried, who had been the public face of respectable crypto and a major political donor, was convicted of fraud a year later and sentenced to 25 years. Bitcoin fell to about 16,000 dollars; most creditors were eventually repaid in full because the assets recovered.